Tauscher was active in Democratic circles as a fundraiser before challenging 10th District Congressman Bill Baker in 1996. Baker was too conservative for the district (particularly in his anti-environmental statements) and Tausher won a razor-thin victory. She managed to win solid victories in 1998 and 2000 against vigorous Republican opposition, even though the 10th was widely considered the most Republican of the Bay Area districts. In 2000, redistricting made Tauscher much safer when some of the more Republican parts of her district were cut out as part of state-wide redistricting. She has since won reelection without serious opposition.

Tauscher is a leading moderate Democrat. She is Chair of the New Democrat Coalition, the caucus of centrist/moderate Democrats in the House of Representatives.